Carolyn J. Cordery

Charity Financial Reporting Regulation: A Comparative Study of the UK and New Zealand

Charities are becoming more highly regulated worldwide and yet they are subject to diverse, country-specific, financial reporting standards. New Zealand is a jurisdiction that has treated all sectors alike in its approach to the financial regulation of charities, while the UK has, for some time, separated the regulation of charities from other entities. This article provides a comparison of the histories of the evolution of regulation for charity reporting in the UK and New Zealand. The current process of international harmonization in both jurisdictions is premised on the principle that accounting conceptual frameworks should not be jurisdiction-specific, but charities have proved to be an exception. We suggest in this study that this exception is attributed to different drivers resulting in regulatory distinctions in two otherwise similar jurisdictions. Without persisting in the maintenance of sector-neutrality, the inevitable divergence increases the load on preparers, attesters, and users and may lead to lower levels of accountability and transparency.

A solution looking for a problem: factors associated with the non‐adoption of XBRL

Purpose – The purpose of this paper is to explore the factors influencing the non‐adoption of Extensible Business Reporting Language (XBRL) technology.Design/methodology/approach – This exploratory study analyses interview data obtained from key XBRL stakeholders on the relative importance of environmental, organisational and technological context factors to ascertain why adoption has not occurred.Findings – The research finds three reasons for XBRL non‐adoption. First, the lack of a government “push” for XBRL technology results in organisational ignorance. Second, it appears that organisations do not believe that XBRL will beneficially reduce compliance costs. Third, complexity in developing the structured language (taxonomy) for XBRL use has significant budgetary implications.Research limitations/implications – As qualitative research, this study does not claim to be generalisable or objective. However, the rich data were analysed from a diverse group of interviewees experienced and knowledgeable in res...

Hallowed Treasures: Sacred, Secular and The Wesleyan Methodists in New Zealand 1819-1840

John Wesley, the eighteenth century reformer, preached that regarding money, his Methodist followers should “gain all you can, save all you can and give all you can”. Methodist attitudes required user reflection and careful recording to ensure good use of money. This attitude towards the pecuniary challenges the sacred–secular dichotomy suggested by Laughlin (1988) and Booth (1993). The early Methodist missionaries in New Zealand provide an example where acculturation demands tempted men with a strong sacred focus to eschew secular accounting for their mission. Steeped in Wesleys writings, Methodist culture and the Bible, however, their letters and diaries included regular stocktakes of barter goods and ledger accounts, suggesting economic accountability. When one missionary misappropriated mission money for personal ends, he was ostracised. Wesleyan Methodist missionaries’ dependence on their supporters required commitment to mission and stewardship of the missions ‘hallowed treasures’, but not a sacred–secular bifurcation which denigrated accounting tasks.

Measuring performance in the third sector

Purpose – The purpose of this paper is to set the scene for this special issue by synthesising the vast array of literature on performance measurement to examine what constitutes performance measurement, and why it is important for the third sector. It also analyses key issues of performance measurement and introduces the papers that comprise this special issue of Qualitative Research in Accounting & Management. Design/methodology/approach – This paper takes the form of a literature review. The authors draw on extensive research on performance measurement from a diverse range of disciplines to identify and explore key definitions, opportunities and challenges with performance measurement in the third sector. Findings – Economic/financial efficiency approaches, programme theories, strategic and participatory approaches all present opportunities and challenges when measuring performance in the third sector. The papers in this special issue demonstrate the manner in which different organisations have dealt w...

A development agenda, the donor dollar and voluntary failure

This paper examines the success and failure of a once pre-eminent New Zealand charity – the Council of Organisations for Relief Service Overseas (CORSO). Delivering aid for government was a factor in its success in its early years, as was its broad membership base. Voluntary failure occurred when CORSO lost government support. It also lost donor support when international charities established a competitive donor ‘market’. Its supporters’ unwillingness to ‘buy-in’ to its mission change to focus on local poverty was another factor in its collapse. This case study employs a framework which extends Salamons (1987) to consider the influence of competition on voluntary failure.

Funding social services: An historical analysis of responsibility for citizens’ welfare in New Zealand

Government funding and delivery of social services increasingly fails to meet citizens’ demands. One theory is that charities alleviate this pressure by delivering services to supplement those that governments provide (Weisbrod, 1988). When the government and market fail to meet social needs, these services are funded by donations and service charges. A second theory is that charities partner with government to fund and deliver complementary services (Salamon, 1987). This article analyses the historical choices made by New Zealand’s government and charities relating to social services funding and delivery. Charities have not responded solely to what Weisbrod (1988) calls government failure, nor have they entered into continuous partnerships with government as Salamon (1987) would suggest. Instead, funding choices appear to be mutable, placing charities and beneficiaries in precarious positions when social services funding reduces. This article encourages debate about how social services should be funded: by government, charities or the marketplace.

Not Reporting a Profit: Constructing a Non‐Profit Organisation

Public sector reformers advocate contracting‐out as a means of improving cost‐effectiveness. In the health sector, market‐based contracts with for‐profit organisations can reduce equity of access and divert public funds to private gain. Such issues have prompted policy makers to seek alternative contracting strategies. This paper examines a primary health care policy whereby government contracts with private non‐profit organisations to increase efficiency and meet World Health Organisation ideals. The study found that the policys implementation has not achieved these aims when for‐profit providers masquerade as non‐profit organisations. The implication is that governments may find it more effective to manage for structural diversity than mandate homogenisation.

Financial reporting standards for the public sector: New Zealand's 21st-century experience

New Zealand was seen as world-leading when public sector financial reports were prepared using sector-neutral accounting standards from 1995 onwards. The decision in 2002 to adopt IFRS was disruptive, effecting new understandings of ‘sector-neutral’, and the standard-setters approach was unsuccessful in meeting public sector users’ needs. The development of a new strategy finalized in 2012 has created a multi-standards framework, including adapted IPSASB standards applicable from 1 July 2014. While neutrality is still prized, it is within a framework of meeting users’ needs. This paper traces the influences expediting these changes.

What Works? A Systematic Review of Research and Evaluation Literature on Encouragement and Support of Volunteering

The Department of Internal Affairs commissioned this systematic literature review to assist the Lottery Grants Board and its distribution committees to make distribution decisions that are evidence-based, and to focus on the most effective interventions. This literature review summarises academic and practitioner research and evaluation from New Zealand and overseas – mostly Australia, the United Kingdom and the United States – on what works to encourage participation in volunteering and to support the management of volunteers. This literature review focuses on what works for managing formal volunteering carried out through the structure of an organization. This is a ‘workplace’ model for involving and managing volunteers, but it recognises that there is a diversity of volunteers and voluntary organisations. Over 1 million New Zealanders participate in volunteering and the government’s vision is that citizens will actively volunteer, be supported and valued. The term ‘volunteering’ is a European word and different cultures in New Zealand use other terms related to obligations and contributing to the common good which encapsulate similar actions (e.g. the Māori concept of mahi aroha). The review highlights research on volunteering in areas funded by the Lottery Grants Board, for example, community and social services, and environment and heritage.Gaskin’s Model of Volunteer Involvement has four stages: the doubter, starter, doer, and stayer. These stages – and the transitions between them – are used to structure the discussion of what works to encourage and support volunteering.The key success factors which research and evaluation tell us work for encouraging and supporting volunteers are: Seeing the involvement of volunteers as a series of stages – from non-volunteer to committed volunteer – helps organisations understand the process of managing volunteers.At a national level, understanding that the motivations and barriers to participation vary and that volunteering should be a fulfilling experience. Government and peak sector bodies should promote a positive image for volunteering. At an organisational level: adopting elements of good volunteer management practice, including: support and communication, insurance coverage, written policies and procedures, recruitment and screening, orientation and training for volunteers, risk management and recognition of volunteers. At the same time, recognising that each organisation will have specific needs in this respect; investing time and money into volunteering infrastructure, including a manager of volunteers; targeted recruitment, carefully matching volunteers to roles, respond to enquiries and maintain a positive organisational image and culture; investing in resources into orientation and relevant ongoing training that is accessible and ensure that staff and stakeholders are also trained in working with volunteers; and adopting practices to retain volunteers, but also to recognise that there are personal, organisational and contextual factors that contribute to volunteers staying as well as leaving the organisation.

Accounting history and religion: A review of studies and a research agenda

Since around 2003, the number and extent of studies into accounting history and religion has increased significantly from their prior scarcity. This growing interest in the junction of accounting, religion and theology recognizes the social and economic importance of belief systems and religious institutions. Yet, publications are unevenly distributed, with a focus on a micro-perspective – analysing the manner in which accounting is practised within organizations. Few studies take a macro-perspective to consider how religion influenced (or potentially could influence) accounting outside of religious institutions. The purpose of this article is to review the contributions in the last three decades, to highlight the topics that remain relatively unexplored, and thus to encourage more research into accounting history and religion. Opportunities for extending knowledge include: comparative studies, studies of countries, people and faiths that have been left largely unexplored, and studies from theologians concerning key concepts (such as ethics) which impact academic understandings, as well as the practical application, of accounting.